Statements of Position



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This Statement provides guidance on the auditor's consideration of materiality and audit risk when planning and performing an examination of financial statements in accordance with generally accepted auditing standards. The concepts of materiality and audit risk affect the application of generally accepted auditing standards, especially the standards of field work and reporting, and are inherent in the autitor's standard report. The concept of materiality recognizes that some matters, either individually or in the aggregate, are important for fair presentation of financial statements, while other matters are not important. Audit risk is the risk that the auditor may unknowingly fail to appropriately qualify his opinion on financial statements that are materially misstated.

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Risk; Auditors' reports; Auditors -- Professional ethics --Standards -- United States


Accounting | Taxation


Originally published by: American Institute of Certified Public Accountants; Copyright and permission to reprint held by: American Institute of Certified Public Accountants.

Proposed statement on auditing standards : materiality and audit risk in conducting an audit ;Materiality and audit risk in conducting an audit; Exposure draft (American Institute of Certified Public Accountants), 1982, Dec. 6



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